Chinese Yuan

The strategies of leading a country change as population grows in size and in mind. China has been a leading reformist nation, with the “Great Leap Forward” as a notable reference. Thought the path that they’ve taken in order to achieve their current status raises debates in parts of the world, the government sees the improvements as another opportunity for further growth

The Chinese yuan (CNY) is the generic term for several Chinese currencies. It is similar to the more popular generic “dollar”. Renminbi (RMB) on the other hand, is the official currency unit of the People’s Republic of China (Mainland China). This is like the “US dollar”, or the “Australian dollar”. No need to further complicate the terms as they are only that: terms.

The yuan banknote denominations are 1, 2, 5, 10, 20, 50, and 100. In 1949, with the Communist Party of China in power, higher denominations were also introduced, namely 500, 1000, 5000, 10000, 50000, 100000, 500000, 1 million, and 5 million yuan. Smaller units are the jiao and fen. One yuan is composed of 10 jiao, and 1 jiao is equal to 10 fen. The symbol used for a yuan is the same as the symbols used in the Japanese yen and the Korean won, i.e. ¥. The jiao has 1, 2, and 5 coin denominations, as with the fen, but the latter is not in circulation. The current exchange rate is 6.5 CNY per 1 USD.

The PRC government is strict when it comes to currency exchange. The Chinese yuan is not freely convertible, particularly in South East Asia, with the exception of Singaporean dollar. US dollars, Japanese yen, and other dollar based countries are allowed transactions. These led to vast counterfeiting activities and black market businesses.

Mao Zedong, undeniably, is a hero and great teacher for the Chinese Reformists. Aside from the statues created for him, his image was also printed on China’s bills. His principles had made China a giant in economic aspects. The government also shows no sign of holding back. While there’s still room for improvement, modern China will be there.

Chinese Yuan